Wednesday, March 30, 2016

Seeking Alpha: NuVasive - Same Opportunities, Same Concerns

Not a lot has really changed for NuVasive (NASDAQ:NUVA). The third-largest spine company in the U.S. by market share, NuVasive continues to take share from larger players on the back of innovative products that offer meaningful advantages in terms of patient outcomes and surgeon convenience. On the other hand, concerns remain about the company's weaker share and lower profits outside the U.S., the company's position in biologics, and the real prospects for meaningful margin improvement in the coming years.

While LDR Holding (NASDAQ:LDRH) looks like a higher risk/reward option, NuVasive and Globus Medical (NYSE:GMED) seem similarly priced in a market that has turned more hostile toward growth med-tech. I don't necessarily think that NuVasive will hit its margin targets (or at least not quickly), but I do believe the company has a solid plan for growing its spine business and using opportunistic M&A to supplement internal innovation. It's not uncommon for the market to run hot and cold on growth med-tech, and I don't know how long this apparent cold cycle will last, but NuVasive is at least worth a spot on a watch list.

Read more here:
NuVasive - Same Opportunities, Same Concerns

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